Earning money through video games has long been a fantasy for gamers, typically only achievable by professionals in the traditional gaming industry. However, with the rapid advancements in the cryptocurrency sector, this dream is becoming a reality through the Play-to-Earn (P2E) model. By leveraging blockchain technology and non-fungible tokens (NFTs), gamers are now able to earn money not only by competing against others but also by engaging with in-game environments. A standout title in this burgeoning field is Axie Infinity. This guide will explore what Axie Infinity is, its origins, and the mechanics of gameplay.
Understanding Axie Infinity
Axie Infinity is a widely recognized blockchain-based game inspired by Pokémon, where players collect digital creatures known as Axies, represented as NFTs. These creatures can be gathered, bred, and sold, with their value fluctuating based on their rarity. Prices for Axies can vary dramatically, with some fetching mere dollars while others command prices in the hundreds of thousands.
The Team Behind Axie Infinity
The inception of Axie Infinity dates back to 2017, spearheaded by Trung Nguyen, a Vietnamese software developer inspired by the success of CryptoKitties, collectible NFT cats on the Ethereum blockchain. Nguyen aimed to harness blockchain technology to allow gamers genuine ownership of their in-game assets. He co-founded Sky Mavis, a tech-driven gaming studio. Observing the rise of P2E games, the team sought to create a Pokémon-inspired experience on the Ethereum blockchain. In 2021, they successfully raised $152 million, elevating Sky Mavis’s valuation to $3 billion, positioning it among the leading gaming firms globally.
Launching Axie Infinity
Axie Infinity was officially launched in March 2018, attracting investment from prominent figures like Mark Cuban, Blocktower Capital, and Libertus. However, it was not until October 2020 that the AXS token gained traction within the crypto community, following an initial exchange offering on Binance’s Launchpad. Each lottery ticket for the offering entitled holders to 2,000 AXS tokens, priced at $0.1 each. Just a year later, by October 2021, the value of these tickets soared to approximately $250,000, marking a staggering increase of nearly 125,000%.
Overview of Axie Infinity Tokens: AXS and SLP
Before delving into the gameplay specifics, it’s essential to discuss the Ronin Network and its two associated tokens: Axie Infinity Shard (AXS) and Small Love Potion (SLP). Understanding why Axie Infinity employs two tokens and their distinct roles is crucial.
The Ronin Network: A Sidechain Solution
The Ronin wallet serves as a browser extension compatible with Google Chrome and Firefox, functioning as the digital wallet for Sky Mavis’s Ronin sidechain. The Ronin ecosystem aims to enhance the Axie Infinity experience, enabling a more accessible economy for players while circumventing the high transaction fees associated with the Ethereum network. As an Ethereum-linked sidechain, Ronin allows users to transfer their in-game assets, such as Axies, land, and items, from Ethereum to its own blockchain.
Understanding the SLP Token
The Small Love Potion (SLP) token is awarded to players for victories in battles within Axie Infinity. SLP serves multiple purposes, including breeding Axies and being traded on the Axie Infinity Marketplace. Unlike AXS, SLP does not have a capped supply, allowing it to be traded for other cryptocurrencies on Katana, the decentralized exchange on the Ronin network.
Exploring the AXS Token
AXS is an ERC-20 utility token that rewards top players from all 19 seasons of the game. Many players exchange their SLP for AXS due to its limited availability. The network operates under a Proof of Authority consensus algorithm, with validators selected by Sky Mavis. AXS holders gain governance rights, allowing them to vote on proposals and stake their tokens for rewards. Currently, the Community Treasury, which collects all game revenue, receives funds primarily from Axie Marketplace transactions and breeding fees. The total supply of AXS is capped at 270 million, with the distribution set to unlock over 65 months.
Acquiring AXS Tokens
Purchasing AXS tokens is essential for engaging with the game’s economy and governance, as well as for generating passive income. Its limited supply drives demand, prompting many users to trade SLP for AXS. AXS can be acquired on various centralized exchanges like Binance, Huobi, and Coinbase, or on decentralized exchanges like Uniswap, with the option to transfer tokens to a Ronin wallet via the Ronin Bridge.
The Land in Axie Infinity
The universe of Axie Infinity, known as Lunacia, is an expansive, player-driven world comprising numerous land plots. These plots are tokenized as NFTs and can be bought, leased, or developed. Lunacia features a 301×301 grid, with each square representing a unique plot of land. Although the land game is still in development, it has already attracted significant investment, with one plot reportedly sold for an astounding $2.3 million in ETH.
Getting Started with Axie Infinity
To embark on your Axie Infinity journey, you first need to create an account by setting up a Ronin wallet. This process is straightforward, requiring just an email confirmation. After registration, you must download the game on your preferred device (iOS, Android, Mac, or Windows) and purchase your initial Axies to form a team for gameplay in both Adventure and Arena modes.
How to Play Axie Infinity
Once in the game, players can access various features from the main menu, including Adventure and Arena modes, leaderboards, and settings. Energy is a crucial component as it is necessary for participating in battles and earning experience points. The amount of energy available correlates with the number of Axies owned, and it regenerates daily.
The gameplay itself revolves around two primary modes: Adventure, where players battle through 36 levels known as Ruins to earn SLP, and Arena, which pits players against one another based on matchmaking ratings. Players can earn rewards by completing daily tasks and winning battles.
Breeding Axies for Profit
Another method of earning in Axie Infinity is through breeding Axies. Each creature has unique traits, and the breeding process incurs costs in both SLP and AXS. There is a limit of seven breedings per Axie before it becomes sterile. The value of Axies can vary widely based on their traits, with some fetching thousands. Notably, the most expensive Axie sold for 300 ETH, approximately $250,000 at the time.
Conclusion
Axie Infinity has demonstrated that players can indeed earn while enjoying their gaming experience. It has emerged as one of the most prominent P2E and NFT games in the crypto sphere, attracting millions of active users each month. The integration of blockchain technology ensures transparency and security, fostering a vibrant ecosystem where gaming and decentralized technology coexist seamlessly.
